Terms Flashcards

1
Q

Co-insurance

A

Coinsurance is the amount, generally expressed as a fixed percentage, an insured must pay toward a covered claim after the deductible is satisfied.

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2
Q

First loss payee

A

loss payee is a person or organization listed on an insurance policy’s declarations page that is entitled to receive claim payments before the policy owner due to a financial interest in the insured property.

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3
Q

Additional insured

A

An additional insured extends liability insurance coverage beyond the named insured to include other individuals or groups

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4
Q

Contract certainty

A

Contract certainty is achieved by the complete and final agreement of all terms (including signed lines) between the insured and insurers before inception.

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5
Q

Condition of average

A

the insurance term used when calculating a payout against a claim where the policy undervalues the sum insured

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6
Q

Indemnity to principle

A

The Indemnity to Principal clause protects the principal (usually the end customer) or the principal contractor by outlining that if a claim is paid, the beneficiary of the policy will not necessarily be the policyholder, but instead the third party who has suffered the damage or injury.

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7
Q

Excess

A

the amount you have to pay towards the overall cost of an insurance claim.

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8
Q

Material fact

A

A fact regarded as likely to affect the assembly or acceptance of a risk

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9
Q

Hold harmless agreement

A

the company that hires you or your firm cannot be held responsible for any injuries, losses or damages that may be caused to you or your company.

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10
Q

Reinsurance

A

Insurance for insurance companies

an arrangement whereby an insurer transfers all or part of a risk to another insurer to provide protection against the risk of the first insurance.

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11
Q

Rights of recourse

A

Rights of recourse is when one party enforces another party to accept its legal liabilities and responsibilities in a contract or something similar. It is the right to have recourse to the responsible party.

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12
Q

Subject matter

A

The specific object or interest that is being insured. This can be tangible or intangible assets

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13
Q

Torte

A

The at fault party can be held responsible for their damages or injuries caused

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14
Q

Contract statute

A

A legally binding document enacted by government

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15
Q

Insurance

A

It provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium.

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16
Q

Claims reserve

A

a reserve of money that is set aside by an insurance company in order to pay policyholders who have filed or are expected to file legitimate claims on their policies.

17
Q

Financial interest

A
18
Q

In the aggregate

A
19
Q

Anyone claim

A